Morning Highlights

Our Focus For Today Is On Blue Chips

STI opens up at 2769.34 and heading towards testing resistance at 2785.94. Index starts to slip down after 10:30 but still trading within tight range.

U.S. stocks fell, halting a two-week advance, as a worsening outlook for technology company earnings added to concern that the eight-month rally in equities outpaced the prospects for economic growth.

Intel Corp. dropped 2.9%, the steepest retreat in the Dow Jones Industrial Average, as Bank of America Corp said computer-chip supply may overwhelm demand. Dell Inc. tumbled 7.2% after profit decreased by more than half. Stocks also slid as yields on Treasury three-month bills turned negative for the first time since financial markets froze last year. Metals producers rose as gold climbed to a record and the dollar fell. (Bloomberg)

Corporate Announcements
Keppel Corp’s offshore and marine subsidiary Keppel FELS Brasil has secured contracts from Noble Corporation to upgrade and repair two of Noble’s Brazil-based drill ships for US$304mn.

News Updates

  • Hershey Trust calls for $17 billion bid for Cadbury: WSJ
  • Democrats appear to have lined up the 60 votes needed to bring health bill to Senate floor‏
  • Thai 2009 GDP forecast to shrink 3.0%
  • Shanghai’s Haitong Securities will pay $234.8 million for a majority stake in Hong Kong’s Taifook Securities, reportedly becoming the first mainland Chinese broker to buy into a Hong Kong peer

Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume.  <The Quick Picks referred herein contain overnight positions from Last Week>

Bullish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 OCBC Overseas Chinese Banking Corp 8.54 8.35 8.56 8.73 Triggered – Current Price at 8.68
2 DBSM DBS Group 14.92 14.52 14.92 15.32 Triggered – Current Price at 15.18
3 STRL Straits Asia  2.24 2.13   2.35  
4 PSLL PSL Holdings 0.25 0.225 0.295
5 YAZG Yangzijiang Shipbuilding 1.19 1.06 1.11 1.49 Triggered – Current Price at 1.20
6 PARM Parkway Holdings 2.72 2.62 2.82
7 SOGF.SI Sino Grandness Food Industry 0.41 0.37 0.395 0.45 Triggered – Current Price at 0.44
8 SCIL Sembcorp Industrial 3.65 3.55 3.73 3.75 Overnight – Current Price at 3.85

Stock Prices last updated at 17.05 (Singapore Time)

Here’s Our Mid Term Holding Opportunities for property shares.

  1. Allgreen Properties – Buy at 1.21, Stop Loss at 1.04
  2. City Development – Buy at 10.50, Stop Loss at 9.55
  3. Wing Tai Holdings – Buy at 1.75, Stop Loss at 1.55
  4. Ezra – Buy at 2.08, Stop Loss at 1.66 

Afternoon Highlights

AusGroup announced the award of a A$100 million contract by BHP Billiton Iron Ore.

New Trade Opportunity with Macquarie Infrastructure Fund, to Buy at 0.46, Stop Loss at 0.425 and Take Profit at 0.495.

FSL Trust said on Monday that it intends to offer up to US$200 million worth of senior notes due in 2016. The proceeds from the issuance of the notes will be used by FSL Trust to repay existing debt, fund future vessel acquisitions and for its general corporate purposes. This is the latest fund-raising exercise by FSL Trust. (CNA) 

Gold hits record high past US$1,160 per ounce.

In Summary,

Market manages to close above 2785.94. There is a last hour surge to break resistance at 2785.94.

Index is up by 36.34 points and closed at 2797.88 with 1.2999 billion traded. However, the volume traded is still not impressive. If US market were to finish well tonight, we will sell half of the quantity of our current positions if the stocks gap up at tomorrow’s open and the rest will trail accordingly.